ANZ Smart Choice Super Investor Update : Member Update Autumn 2015
555 Investment insights Stewart Brentnall, ANZ Global Wealth’s Chief Investment Officer, looks at the factors that have improved investor confidence in the March quarter. He also looks at the trends which may impact the word economy in the months ahead. The low interest rate environment has seen all sectors do well this quarter as investors have sought out assets that will deliver better returns than cash. What is driving the greater certainty and confidence in investment markets? Here we explore some of the big picture factors at play: European Central Bank (ECB) assures the market with stimulus measures In January, after months of speculation, the European Central Bank (ECB) announced a program to support growth by buying euro zone government bonds. The program commenced in March and will continue until the ECB sees inflation move up towards its target level. The size and open ended nature of the program was greater than financial markets expected and shares rallied as a result. China takes action to avoid growth slowdown In China, the government lowered its growth objective for 2015 slightly, focussing on achieving better quality and more balanced growth. In other words, it is looking for stronger consumption rather than higher investment. Market Watch video - March quarter In this Market Wrap, Mark Rider, Head of Investment Strategy at ANZ Wealth looks at the events that have driven the improvement in investment performance over the March quarter, including central bank actions. Why do policy makers lower interest rates? Typically low interest rates provide an economic boost by encouraging businesses to borrow money and consumers to spend. Another benefit of lower interest rates is that they generally lower the value of the local currency. This makes exports more competitive and can provide a further lift to the local economy.
Member Update Summer 2015
Member Update Winter 2015